Archive for the ‘Advice’ Category

The past decade has witnessed an unprecedented convergence of physical and digital worlds.

Ceaseless technological innovation is driving a perpetual seismic shift, fundamentally changing almost every aspect of our lives, from the way we communicate to how we manage our health.

There can be no more striking example of this constant evolution than in the way we make payments.

The growth of digital transactions is the most significant development in this arena since the introduction of plastic payment cards half a century ago and has accelerated the rate of change beyond all expectations.

But as technology permits novel, faster, simpler and more convenient ways to pay, so with each step we must adapt new defences to thwart fraud.

By constantly stress-testing these safeguards and improving them, payments have undeniably never been more secure. But, at the same time, criminals have never been smarter.

Cybercrime is the now the most serious threat to businesses and national economies that has ever been seen.

Adrian Leppard, the City of London Police Commissioner, was not exaggerating when he recently warned that it may be more lucrative than the drugs trade.

The biggest bank raid in history – uncovered earlier this year – was not staged by balaclava-clad crooks wielding sawn-off shotguns. It was a gang of computer hackers that plundered £650million from more than 100 financial institutions worldwide with the click of a mouse.

But despite these and multiple other alarm bells ringing, the world is at very real risk of sleepwalking into deeper disaster. The technology to counter these threats exists but is simply not being adopted widely or quickly enough, needlessly gifting the upper hand to cyber-criminals.

It is for this reason that we are witnessing such a sharp surge in attacks – and these are just the ones we know about.

To turn the tide in this battle requires the universal commitment of financial institutions, retailers and payment networks, as well as greater vigilance among consumers.

It also demands agility – ensuring the latest and most effective weapons available are being deployed to counter every possible line of attack and stay one step ahead of criminals.

The slow uptake of what many of us already consider essential technologies is an indication of the scale of the challenge ahead. While research shows that 43% of global fraud is achieved through counterfeiting cards, EMV (chip and PIN) has still not taken root in some of the world’s largest economies. It’s effectiveness as a first line of defence is clear – in Africa, Europe and Canada it has slashed fraud by 80%.

A greater menace is the growing scourge of card not present attacks, which account for more than half of all fraud but can be countered through existing identity verification techniques. Entry level tools such as password cardholder verification are still not universally used, yet far more secure methods using biometrics are already waiting in the wings. These technologies hold huge potential for eliminating the human error of relying on passwords while also making payments both easier and safer in one fell swoop. Innovations supported by our network, demonstrate the potential in this field but this is just the tip of the iceberg.

Furthermore, there were more than 420 million cardholder identities exposed through merchant system breaches – a number that could be dramatically cut through greater use of encryption and tokenization, which shield sensitive data by making consumers’ card numbers anonymous.

And working silently above all of these measures are state-of-the-art real-time network monitoring and transaction screening systems to fight cyber hacks on banks, processors and, increasingly, the Internet of Things.

The crucial point here is that there is no silver bullet to preventing security breaches and defeating fraud – a multi-layered approach using the entire repertoire of defences must be pursued.

This means adopting measures that not only prevent breaches but are also capable of detecting and resolving threats once security has been compromised, thus minimising losses.

One of the key lessons from the £650million Carbanak attack – in which hackers used viruses to infect the networks of financial institutions – is that once inside, this malware is very difficult to identify until it is too late and the damage has been done.

The overall benefit of making safety and security a priority goes beyond preventing such high value losses – the reputational impact of such attacks and their effect on daily banking can have a devastating effect on an institution’s bottom line. This could not be more important in an era when public trust in the banking sector has been so significantly impacted in the wake of the global economic crisis.

But the onus cannot rest solely on financial institutions. I firmly believe that the payments industry as a whole has a responsibility to enhance the overall payment experience without making compromises on safety. That is why safety and security has always been MasterCard’s number one priority.

The world of electronic payments has changed beyond all expectations and the pace of development shows no sign of slowing down. We will see greater change in the next five years than we have seen in the last five decades, bringing ever more security challenges and opportunities.

To really stay one step ahead, we need to work in partnership and stimulate a change in mindset from one that sees security innovations as optional to one that recognisesthey are an absolute necessity. Through the right global standards, best products and services, and our desire to constantly innovate, we can ensure everyone is protected everywhere and every time they pay, which will ultimately define and defend the future of payments.

The needs of a journey

Travelling? The best vacation checklist

Travelling is fun when properly planned. Prior planning helps one avoid the disappointments associated with shortages , inconveniences or unplanned costs. How would feel after meeting all the travel expenses only to find that you lack some of the essentials for the journey?.

A traveler’s checklist will help you avoid such circumstances. The demands of a journey depends on some various factors. They include

Purpose of the journey – Or the reason you are travelling. The needs for safari journey are different from those of business travelling.

Duration of stay – The needs of a person travelling for one month are different from those of a person travelling for days.

Place – Each place has its specific needs and demands. This may be due to terrain, weather, insects present etc. It determines what you are going to include in your travelling pack. It is therefore good that you consult a person or do some research on the area that you are visiting.

What do am I going to pack?

Essentials first rule

There are some general things that should never miss in your travelling pack. People sometimes tend to forget about them only to realize how costly their mistakes were.

They include;

Emergency contacts – Yes, you can never be 100% about your safety especially when travelling abroad. So who would you contact in case of an accident or disaster? You should always have emergency contacts of maybe your country embassy or consulate.

International driving permit – May be you would be staying for long in the place that you are travelling. The cost of hiring taxis may be high and there might be inconveniences associate with the public transport means. The best way to prepare for this uncertainty is to carry your international driving permit

Timetable – Yes, you should have a clear timetable which shows where you are supposed to be and at what time. This will help you avoid wasting time on some unintended activities only to realize this when time is already gone.

Money access means – Be sure of the availability of the means of accessing money in the place you will be travelling. It is advisable that you use the easily convertible currencies for conveniences.

Medication – You may be under certain medication. You can never be sure on the availability of same health services in the place you are travelling. It is therefore good to carry with you drugs which highly depend on. It is also good to carry sunscreen creams and sunglasses if your vacation involves much exposure to sun. Insect repellants and first aid kit are also essential if it is a wild life tour or safari.

Adequate clothing – You should take into consideration the weather of the place that you will be visiting when choosing the types of clothes to carry. The type also depends on the anticipated vacation activities.

Journal / camera– So how are you going to capture the memorable moments of your vacation? If possible, it is good that you include a good camera in your travelling list. If not possible, get a good journal and capture the moments.

Documentation – Make sure that you have included all the essential legal travel documents in your pack list. The may include passport, vaccination certificates, Identity cards etc. Take your time to check on their validity.

In June alone, the U.S. Food and Drug Administration (FDA) refused the importation of over 200 different shipments of Cosmetics from 22 different countries.The two main reasons the FDA cited in refusing entry of cosmetic products were:

The products were “adulterated” (unsafe addition of a color additive).

Definition of a Cosmetic vs. Drug

Misbranding may come down to whether the FDA believes the product is a drug (which is often based on the products intended use, and labeling claims). It is therefore important to know the difference in the way FDA defines cosmetics and drug products, to ensure you label your products correctly.

A product designed for “cleansing beautifying, promoting attractiveness, or altering the appearance,” is generally defined as a cosmetic by the FDA.

A drug on the other hand, is as a product “intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease,” or “intended to affect the structure or any function of the body.”

Why Cosmetic Products will be Refused by the FDA

One prevalent reason the FDA refuses cosmetic products is because of the claims cosmetic products makes rendering the product a “drug”. A health claim is one example of a type of claim, specifically it is a claim that the product affects the structure and or function of the human body. If your product makes a health claim it may be rendered and regulated as a drug by the FDA.

In response to the increase use of “health claims” on cosmetic products, the FDA re-published an import alert for skin care products labeled as anti-aging. These products claimed to reverse the effects of aging by controlling or preventing the aging process, which is a claim that the product affects the structure and functions of the human body, and were thus regulated a drug product by the FDA.

The FDA issued a consumer update this March highlighting the difference between a drug and a cosmetic product. The purpose of this publication was to inform consumers about cosmetic products that promise too much. In order to protect consumers from this type of cosmetic misbranding, the FDA has told companies to remove drugs claims or seek FDA approval to market these products as drugs (this is a timely and very expensive process). However, the FDA further admits that there is “no one-size-fits all answer” to whether a claim is a drug claim or cosmetic claim.

Form 766

If your product is on hold by the FDA because it is misbranded, there are affirmative actions you can take. Section 801(b) of the Federal Food, Drug, and Cosmetic Act states that an importer of record may submit to the FDA a written application (using FDA’s Form 766) requesting permission to “recondition” your product. This post-compliance action, if approved by the FDA, will allow your product to be released. As approval is discretionary by the FDA, it is important you take the right steps and hire the right expert to assist you in this process.

FTC

In addition to regulation by the FDA, cosmetic companies are also subject to regulation by the Federal Trade Commission (FTC). The FTC issues administrative complaints when companies engage in unfair methods of competition or unfair and deceptive acts, such as deceptive advertising. The FTC has issued complaints following FDA warning letters to cosmetic companies.

You may recall cosmetics company L’Oréal USA, Inc. receiving a FTC complaint alleging deceptive advertising of its products Lancôme Génifique and L’Oréal Paris Youth Code. The FTC has accepted, subject to final approval, an agreement containing a consent order (proposed order) from L’Oréal. According to the complaint, L’Oréal violated Sections 5(a) and 12 of the Federal Trade Commission Act because they claimed that its Génifique products were “clinically proven” to “boost genes’ activity and stimulate the production of youth proteins that would cause “visibly younger skin in just 7 days,” and would make you look as if you “slept 2 extra hours.” Similarly, L’Oréal claimed that its Youth Code products were the “new era of skincare: gene science,” and that consumers could “crack the code to younger acting skin.” L’Oréal made these claims via print, radio, television, internet and social media outlets. (It is important to note, both FDA and FTC regulate not only the product, but, also all ancillary advertisements, including websites). The FTC’s complaint followed the U.S. Food and Drug Administration’s (FDA) warning to L’Oreal about language used in their advertisements that made the products sound more like drugs than cosmetics.

How Becker & Poliakoff Can Help

Although the FDA has issued import alerts, consumer updates, and labeling guides for cosmetics, there is still no bright line between cosmetic type claims and drug claims. Unfortunately, if the FDA finds your cosmetic product on the wrong side of that line, your product may be detained and later potentially refused by the FDA. The solution is to ensure you use “pre-compliance”, by having all products, ingredients, claims and ancillary marketing reviewed by an expert PRIOR to importation.

Attorney Charles “Bucky” Zimmerman has never shied away from taking on major cases. So far he has represented a range of clients from famed athletes George Foreman and Jim Brown, to clients in classes action lawsuits against major corporations such as Medtronic, Zicam, Target, and the NFL to name a few. Zimmerman and the firm he founded – Zimmerman Reed – has a proven track record having settled multiple $100 million and above cases.

Of Zimmerman’s many accomplishments throughout his career, he sees his victory against the tobacco industry as one that particularly stands out. In this case Zimmerman worked as part of the Castano group – a group of elite law firms that filed a class action lawsuit against the tobacco industry. This led to a historic settlement of more than $360 billion in June 1997.

Currently Zimmerman is currently involved in representing former players in the NCAA and NHL who have suffered the consequences of concussions while playing their respective sports. Already he has settled a case with the NFL for $765 million involving 4,500 former NFL players who have had concussions. These cases aim to help players who are at greater risk of brain related diseases such as Alzheimer’s, dementia, and other brain related disorders.

Over the past ten years Zimmerman has seen some changes in how law is practiced. “It’s transformed from a profession where professional courtesies were a matter of course to a business where business decisions begin to drive people’s behavior” says Zimmerman. He only seems to be adding on to his list of accomplishments though. With the release of the Minnesota Super LawyersMagazine, Zimmerman can tack on his tenth selection to a Super Lawyers list. “It’s very nice being recognized for your work professionally and being put into a group with other lawyers who have been similarly recognized.”

The past decade has witnessed an unprecedented convergence of physical and digital worlds.

Ceaseless technological innovation is driving a perpetual seismic shift, fundamentally changing almost every aspect of our lives, from the way we communicate to how we manage our health.

There can be no more striking example of this constant evolution than in the way we make payments.

The growth of digital transactions is the most significant development in this arena since the introduction of plastic payment cards half a century ago and has accelerated the rate of change beyond all expectations.

But as technology permits novel, faster, simpler and more convenient ways to pay, so with each step we must adapt new defences to thwart fraud.

By constantly stress-testing these safeguards and improving them, payments have undeniably never been more secure. But, at the same time, criminals have never been smarter.

Cybercrime is the now the most serious threat to businesses and national economies that has ever been seen.

Adrian Leppard, the City of London Police Commissioner, was not exaggerating when he recently warned that it may be more lucrative than the drugs trade.

The biggest bank raid in history – uncovered earlier this year – was not staged by balaclava-clad crooks wielding sawn-off shotguns. It was a gang of computer hackers that plundered £650million from more than 100 financial institutions worldwide with the click of a mouse.

But despite these and multiple other alarm bells ringing, the world is at very real risk of sleepwalking into deeper disaster. The technology to counter these threats exists but is simply not being adopted widely or quickly enough, needlessly gifting the upper hand to cyber-criminals.

It is for this reason that we are witnessing such a sharp surge in attacks – and these are just the ones we know about.

To turn the tide in this battle requires the universal commitment of financial institutions, retailers and payment networks, as well as greater vigilance among consumers.

It also demands agility – ensuring the latest and most effective weapons available are being deployed to counter every possible line of attack and stay one step ahead of criminals.

The slow uptake of what many of us already consider essential technologies is an indication of the scale of the challenge ahead. While research shows that 43% of global fraud is achieved through counterfeiting cards, EMV (chip and PIN) has still not taken root in some of the world’s largest economies. It’s effectiveness as a first line of defence is clear – in Africa, Europe and Canada it has slashed fraud by 80%.

A greater menace is the growing scourge of card not present attacks, which account for more than half of all fraud but can be countered through existing identity verification techniques. Entry level tools such as password cardholder verification are still not universally used, yet far more secure methods using biometrics are already waiting in the wings. These technologies hold huge potential for eliminating the human error of relying on passwords while also making payments both easier and safer in one fell swoop. Innovations supported by our network, demonstrate the potential in this field but this is just the tip of the iceberg.

Furthermore, there were more than 420 million cardholder identities exposed through merchant system breaches – a number that could be dramatically cut through greater use of encryption and tokenization, which shield sensitive data by making consumers’ card numbers anonymous.

And working silently above all of these measures are state-of-the-art real-time network monitoring and transaction screening systems to fight cyber hacks on banks, processors and, increasingly, the Internet of Things.

The crucial point here is that there is no silver bullet to preventing security breaches and defeating fraud – a multi-layered approach using the entire repertoire of defences must be pursued.

This means adopting measures that not only prevent breaches but are also capable of detecting and resolving threats once security has been compromised, thus minimising losses.

One of the key lessons from the £650million Carbanak attack – in which hackers used viruses to infect the networks of financial institutions – is that once inside, this malware is very difficult to identify until it is too late and the damage has been done.

The overall benefit of making safety and security a priority goes beyond preventing such high value losses – the reputational impact of such attacks and their effect on daily banking can have a devastating effect on an institution’s bottom line. This could not be more important in an era when public trust in the banking sector has been so significantly impacted in the wake of the global economic crisis.

But the onus cannot rest solely on financial institutions. I firmly believe that the payments industry as a whole has a responsibility to enhance the overall payment experience without making compromises on safety. That is why safety and security has always been MasterCard’s number one priority.

The world of electronic payments has changed beyond all expectations and the pace of development shows no sign of slowing down. We will see greater change in the next five years than we have seen in the last five decades, bringing ever more security challenges and opportunities.

To really stay one step ahead, we need to work in partnership and stimulate a change in mindset from one that sees security innovations as optional to one that recognisesthey are an absolute necessity. Through the right global standards, best products and services, and our desire to constantly innovate, we can ensure everyone is protected everywhere and every time they pay, which will ultimately define and defend the future of payments.

The needs of a journey

Travelling? The best vacation checklist

Travelling is fun when properly planned. Prior planning helps one avoid the disappointments associated with shortages , inconveniences or unplanned costs. How would feel after meeting all the travel expenses only to find that you lack some of the essentials for the journey?.

A traveler’s checklist will help you avoid such circumstances. The demands of a journey depends on some various factors.They include

Purpose of the journey – Or the reason you are travelling. The needs for safari journey are different from those of business travelling.

Duration of stay – The needs of a person travelling for one month are different from those of a person travelling for days.

Place – Each place has its specific needs and demands. This may be due to terrain, weather, insects present etc. It determines what you are going to include in your travelling pack.It is therefore good that you consult a person or do some research on the area that you are visiting.

What do am I going to pack?

Essentials first rule

There are some general things that should never miss in your travelling pack. People sometimes tend to forget about them only to realize how costly their mistakes were.

They include;

Emergency contacts – Yes, you can never be 100% about your safety especially when travelling abroad. So who would you contact in case of an accident or disaster? You should always have emergency contacts of maybe your country embassy or consulate.

International driving permit – May be you would be staying for long in the place that you are travelling. The cost of hiring taxis may be high and there might be inconveniences associate with the public transport means. The best way to prepare for this uncertainty is to carry your international driving permit

Timetable – Yes, you should have a clear timetable which shows where you are supposed to be and at what time.This will help you avoid wasting time on some unintended activities only to realize this when time is already gone.

Money access means – Be sure of the availability of the means of accessing money in the place you will be travelling. It is advisable that you use the easily convertible currencies for conveniences.

Medication – You may be under certain medication. You can never be sure on the availability of same health services in the place you are travelling. It is therefore good to carry with you drugs which highly depend on. It is also good to carry sunscreen creams and sunglasses if your vacation involves much exposure to sun. Insect repellants and first aid kit are also essential if it is a wild life tour or safari.

Adequate clothing – You should take into consideration the weather of the place that you will be visiting when choosing the types of clothes to carry.The type also depends on the anticipated vacation activities.

Journal / camera– So how are you going to capture the memorable moments of your vacation?.If possible,it is good that you include a good camera in your travelling list.If not possible, get a good journal and capture the moments.

Documentation – Make sure that you have included all the essential legal travel documents in your packlist.The may include passport, vaccination certificates, Identity cards etc.Take your time to check on their validity.

In June alone, the U.S. Food and Drug Administration (FDA) refused the importation of over 200 different shipments of Cosmetics from 22 different countries.The two main reasons the FDA cited in refusing entry of cosmetic products were:

The products were “adulterated” (unsafe addition of a color additive).

Definition of a Cosmetic vs. Drug

Misbranding may come down to whether the FDA believes the product is a drug (which is often based on the products intended use, and labeling claims). It is therefore important to know the difference in the way FDA defines cosmetics and drug products, to ensure you label your products correctly.

A product designed for “cleansing beautifying, promoting attractiveness, or altering the appearance,” is generally defined as a cosmetic by the FDA.

A drug on the other hand, is as a product “intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease,” or “intended to affect the structure or any function of the body.”

Why Cosmetic Products will be Refused by the FDA

One prevalent reason the FDA refuses cosmetic products is because of the claims cosmetic products makes rendering the product a “drug”. A health claim is one example of a type of claim, specifically it is a claim that the product affects the structure and or function of the human body. If your product makes a health claim it may be rendered and regulated as a drug by the FDA.

In response to the increase use of “health claims” on cosmetic products, the FDA re-published an import alert for skin care products labeled as anti-aging. These products claimed to reverse the effects of aging by controlling or preventing the aging process, which is a claim that the product affects the structure and functions of the human body, and were thus regulated a drug product by the FDA.

The FDA issued a consumer update this March highlighting the difference between a drug and a cosmetic product. The purpose of this publication was to inform consumers about cosmetic products that promise too much. In order to protect consumers from this type of cosmetic misbranding, the FDA has told companies to remove drugs claims or seek FDA approval to market these products as drugs (this is a timely and very expensive process). However, the FDA further admits that there is “no one-size-fits all answer” to whether a claim is a drug claim or cosmetic claim.

Form 766

If your product is on hold by the FDA because it is misbranded, there are affirmative actions you can take. Section 801(b) of the Federal Food, Drug, and Cosmetic Act states that an importer of record may submit to the FDA a written application (using FDA’s Form 766) requesting permission to “recondition” your product. This post-compliance action, if approved by the FDA, will allow your product to be released. As approval is discretionary by the FDA, it is important you take the right steps and hire the right expert to assist you in this process.

FTC

In addition to regulation by the FDA, cosmetic companies are also subject to regulation by the Federal Trade Commission (FTC). The FTC issues administrative complaints when companies engage in unfair methods of competition or unfair and deceptive acts, such as deceptive advertising. The FTC has issued complaints following FDA warning letters to cosmetic companies.

You may recall cosmetics company L’Oréal USA, Inc. receiving a FTC complaint alleging deceptive advertising of its products Lancôme Génifique and L’Oréal Paris Youth Code. The FTC has accepted, subject to final approval, an agreement containing a consent order (proposed order) from L’Oréal. According to the complaint, L’Oréal violated Sections 5(a) and 12 of the Federal Trade Commission Act because they claimed that its Génifique products were “clinically proven” to “boost genes’ activity and stimulate the production of youth proteins that would cause “visibly younger skin in just 7 days,” and would make you look as if you “slept 2 extra hours.” Similarly, L’Oréal claimed that its Youth Code products were the “new era of skincare: gene science,” and that consumers could “crack the code to younger acting skin.” L’Oréal made these claims via print, radio, television, internet and social media outlets. (It is important to note, both FDA and FTC regulate not only the product, but, also all ancillary advertisements, including websites). The FTC’s complaint followed the U.S. Food and Drug Administration’s (FDA) warning to L’Oreal about language used in their advertisements that made the products sound more like drugs than cosmetics.

How Becker & Poliakoff Can Help

Although the FDA has issued import alerts, consumer updates, and labeling guides for cosmetics, there is still no bright line between cosmetic type claims and drug claims. Unfortunately, if the FDA finds your cosmetic product on the wrong side of that line, your product may be detained and later potentially refused by the FDA. The solution is to ensure you use “pre-compliance”, by having all products, ingredients, claims and ancillary marketing reviewed by an expert PRIOR to importation.